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The Federal Trade Commission announced Thursday that it’s looking to shut down the “largest overseas real estate investment scam” it has ever encountered: an unfinished luxury development in Belize whose owners, the agency said, bilked people out of more than $ 100 million.
The scheme’s perpetrators…
The United States unveiled charges against two alleged Chinese spies, accusing them of orchestrating a conspiracy to steal prized jet-engine technology from private companies — including in Los Angeles — as the Trump administration raises pressure on Beijing to address its trade grievances.
The case of a British sailor who was initially arrested on charges he was smuggling gold and silver coins while on a voyage to Cuba has since had a murder count added to his list of woes. The FBI believes Lewis Bennett killed his wide, Isabella Hellman, as they plied…
A trader has posted on Twitter alleging that an actor is taking advantage of Bithumb’s 120% fee payback to milk the platform of approximately $ 150,000 USD each day through washtrading.
Twitter Trader Claims Bithumb’s Promotional Fee Schedule is Getting Exploited
The Twitter account of Alex Kruger, a cryptocurrency trader, has posted allegations Bithumb is losing roughly $ 150,000 each day to a single opportunist actor who is exploiting the exchange’s 120% fee payback schedule.
Summarizing his findings, Mr. Kruger asserts that “There currently are USD 250 million of fake volume traded at Korean crypto exchange Bithumb, every day at 11 AM Korean Time, since August/25.”
Trader Alleges Actor is Rorting Bithumb Through Washtrading
Elaborating upon his theory, Mr. Kruger posted “Bithumb offers 120% payback of trading fees as an airdrop,” before quoting Bithumb’s website – “Daily Limit 1 billion KRW, First Come First Served.” As of this writing, 1 billion KRW equates to approximately $ 890,068.
“Trading fees are 0.15% taker,” his post continues. “Wash trading conducted by entering two opposite limit orders => Total fees 0.3%. Rebate is for 120% => 0.36%. To collect the full KRW 1 billion rebate a wash trader must thus trade KRW 278 billion. That is USD 250 million in daily fake volume.”
31,000 BTC Traded at 11 AM on Bithumb Daily
Again citing Bithumb’s “First Come First Served” stipulation, Mr. Kruger links to a chart that shows 31,000 BTC being executed at 11 AM each day, stating “Notice how 31K bitcoin are traded at exactly 11 AM. That represents KRW 252 billion,” also asserting that “The remainder KRW 26 billion are traded in other coins.”
Mr. Kruger concludes that “some smart trader/s are milking […] Bithumb every day,” adding that “The amount traders collect from Bithumb is USD 150,000 daily. Or USD 4.5 million for the duration of the promotion. Expensive marketing campaign.”
News.Bitcoin.com reached out to Bithumb for commentary, however, did not receive a response.
What is your response to the theory that a trader or traders are exploiting Bithumb’s 120% fee payback through washtrading? Share your thoughts in the comments section below!
Images courtesy of Shutterstock, Twitter
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